Wednesday, May 15, 2013

Fidelity, Vanguard, E*Trade, TD Ameritrade and Schwab offer commission free ETF investing for their customers. The number, ETF company, and ETF sector vary by brokerage firm, but include many of the popular ETFs. Companies Add to Lineups of 'Free' ETFs by The Wall Street Journal does an excellent summary of the ETF offerings and the trading restrictions for each brokerage.

I plan to use commission free ETFs as a cost effective way to create a diversified portfolio, using primarily broad market index ETFs. Here's how commission free ETFs will minimize my cost and expenses.

No trading costs. I can periodically purchase small lots and incur no additional costs above the ETF expense ratios. This will enable me to make small initial investments and dollar cost average without trading costs reducing my returns.

Low expense ratios. The commission free ETFs include companies that offer the lowest expense ratios for index ETFs, as low as .04%. That would be only $4 of expenses per $10,000 invested on an annual basis.

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About Me

My wealth goal is to create a guaranteed yearly income stream equal to my highest salary for my retirement years. While I have developed a strategy to do this,
I am interested how others are thinking of achieving financial security for retirement.
This blog is a summary of facts, ideas, discussions, and action plans to achieve that goal.

Disclaimer

This is a personal blog about my thoughts, experiences and ideas on building wealth. The contents of this blog are for informational purposes only. No content should be construed as financial advice. Commenters, advertisers and linked sites are entirely responsible for their own content and do not represent the views of My Wealth Builder. All financial decisions involve risks and results are not guaranteed. Always do your own research, due diligence and consult your own professional advisor before making any decision. My Wealth Builder assumes no liability with regard to financial results based on use of information from this blog.

If this blog contains any errors, misrepresentations, or omissions, please contact me or leave a comment to have the content corrected.

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Disclaimer:
This is a personal blog about my thoughts, experiences and ideas on building wealth. The contents of this blog are for informational purposes only. No content should be construed as financial advice. Commenters, advertisers and linked sites are entirely responsible for their own content and do not represent the views of My Wealth Builder. All financial decisions involve risks and results are not guaranteed. Always do your own research, due diligence and consult your own professional advisor before making any decision. My Wealth Builder assumes no liability with regard to financial results
based on use of information from this blog.

If this blog contains any errors, misrepresentations, or omissions, please contact me or leave a comment to have the content corrected.